The Financial Sector Conduct Authority (FSCA) has issued Notice 362 of 2018 on the Levies of Financial Institutions. Authorised financial services providers (FSPs) are required to pay a levy to the FSCA to cover the cost of supervision and a levy for funding the Office of the FAIS Ombud by 31 October 2018.
The tables below set out the FAIS levy which must be paid by the different categories of FSPs (Section 18) and the FAIS Ombud levy which is due by all FSPs (Section 19).
Where there are multiple FSPs that form part of the same legal entity, they are jointly and severally liable for the payment of a single levy. The key individuals and representatives, for purposes of the levy payment, are deemed to be the key individuals and representatives of one FSP.
Where an FSP’s licence is suspended on 31 August 2018, but the suspension is lifted after that date then the FSP is liable to pay the levy within 30 days from the suspension being lifted. The levy must be calculated based on the statistics of the FSP on the date of the suspension being lifted.
Levies due by FSPs will be calculated based on the information available to the FSCA on 31 August 2018. It is, therefore, important for FSPs to ensure that their information is correct and to notify the FSCA or make changes on the FAIS ePortal before 31 August 2018.
Should the levy not be paid, the licence of the authorised financial services provider may be withdrawn in terms of section 9 of the Financial Advisory and Intermediary Services Act. FSPs must, therefore, make provision for the levy which is due by 31 October 2018.
Click here to read the Notice of levies on Financial Institutions.